Crypto Price Analysis 1-27: BITCOIN: BTC, ETHEREUM: ETH, SOLANA: SOL, DOGECOIN: DOGE, INJECTIVE: INJ, ALGORAND: ALGO, PUDGY PENGUINS: PENGU
Bitcoin (BTC) witnessed a sudden slump late on Sunday as the price plummeted from around $105,000 to an intraday low of $100,905. The flagship cryptocurrency is struggling to recover and is trading around $101,400, having dropped over 3% over the past 24 hours.
Markets are starting the week firmly in the red, with most cryptocurrencies deep in the red. Ethereum (ETH) is down nearly 5%, having slipped below $3,300 and is currently trading around $3,180. Ripple (XRP) has followed a similar trajectory and is down over 4%, with the price barely holding above $3 for now. Meanwhile, Solana (SOL) has registered a substantial drop of over 9% and is trading around $235. Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), Hedera (HBAR), Stellar (XLM), Toncoin (TON), Polkadot (DOT), and Litecoin (LTC) have also registered significant declines and are trading in the red.
Bitcoin (BTC) Decline Sparks Liquidations
Bitcoin (BTC) registered a sudden drop from $105,000, losing ground and dropping to a low of $100,905. The unexpected decline set off a wave of liquidations, with over $128 million in long positions across the crypto derivatives markets within a four-hour window. Total liquidations in the crypto derivatives markets surged to $371 million, including $132 million in long positions, of which $128 million occurred in just a four-hour window on Sunday. However, despite the massive selloffs, open interest in the Bitcoin futures market remained high, surpassing $64 billion.
BTC’s price fluctuations demonstrate the tug-of-war between optimism and market uncertainty as January enters its last week. While the liquidations and a jump in selling pressure indicate investor caution, high trading volumes, and open interest indicate that market confidence remains high.
Brazil Bans Worldcoin From Offering Crypto For Biometric Data
Brazil’s data protection has ordered the company tasked with collecting biometrics for the World ID project to stop offering crypto in exchange for collecting biometric data from its citizens. The country’s National Data Protection Authority (ANPD) ordered Tools for Humanity (TFH), the entity behind World Network, to stop providing services to Brazilians from January 25. The order comes after an investigation that began in November after the launch of the World ID project in Brazil. The ANPD’s enforcement division concluded that offering crypto as compensation could compromise the validity of user consent for collecting sensitive data.
World Network was co-founded in 2019 by OpenAI CEO Sam Altman and uses iris biometrics developed by Tools of Humanity. The company aims to create a universal digital identity and financial network using people’s biometrics. However, Brazilian law mandates that consent for processing sensitive personal data must be free, informed, unequivocal, and given for specific purposes. The ANPD stated that financial incentives could influence people’s decision-making and also expressed concerns about the sensitive nature of biometric data, the irreversible nature of data collection, and the inability to delete the biometric data collected.
Crypto Industry’s Return On Trump Investment
The cryptocurrency industry is getting a quick return on their investment in Donald Trump, with the president’s first week in office including rule changes, executive orders, and rule changes favoring the crypto industry. The crypto industry poured millions into Trump’s campaign after he promised a crypto-friendly administration and a clear regulatory framework. Now, the crypto industry is reaping the benefits of its investment. Benchmark’s Bill Gurley, stated,
“I don’t think they could have imagined a better outcome than they just got in the past 48 hours.”
However, he noted that tech’s new and growing influence in Washington could be detrimental to some parts of the startup ecosystem.
The crypto industry’s support for Trump was due to his promise to stop the government crackdown on crypto and draft clear regulations, making it easy to offer new payment technologies and ease restrictions on crypto investments. Several in the industry felt they were being unfairly targeted by the previous administration, with several industry heavyweights like Brian Armstrong heralding the beginning of a new era for crypto. Armstrong had stated,
“You have to remember, the last four years, we really felt like we were being attacked by this administration. There were some bad actors too, to be fair,” Armstrong said. “But they even really tried to go after the good actors, I think, like us.”
Armstrong stated that the Biden administration and the Securities and Exchange Commission, under former Chair Gary Gensler, tried to weaponize the lack of regulatory clarity, even punishing companies that were trying to be helpful.
Trump has ordered the creation of a crypto working group to create a regulatory framework for crypto and evaluate the creation of a cryptocurrency stockpile. The executive order also prioritized digital asset adoption and outlined key priorities like protecting Bitcoin miners. It also banned a digital dollar from the Federal Reserve while promoting other US Dollar-pegged stablecoins.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) held firm at around $105,000 for most of the weekend before experiencing a sudden drop that took the price to a low of $100,905. Analysts expected a correction if BTC closed below the $100,000 support level. If BTC’s current decline continues and it dips below $100,000, we could see a retest of the $90,0000 support level. One analyst has warned of an imminent bear market for BTC, raising concerns based on historical patterns following Bitcoin halving events. According to the analyst, BTC and the broader crypto market could enter a bearish phase 90 days from now based on the cyclical nature of BTC’s price movements.
We can see in the price chart that BTC is struggling to stay above the $100,000 support level, with the price already hitting an intraday low of $99,619. BTC has faced significant volatility since last weekend, experiencing significant price swings on Sunday. The price surged to an intraday high of $106,552 and dropped to an intraday low of $99,766 before settling at $101,434. Volatility persisted on Monday as BTC surged to a new all-time high of $109,350. However, buyers lost momentum after reaching this level and dropped to an intraday low of $99,514 before recovering to register an increase of 0.96% and settle at $102,408. Buyers retained control on Tuesday as BTC rose 3.56% and settled at $106,054. Despite strong bullish sentiment, BTC was back in the red on Wednesday, dropping 2.21% to $103,715.
Source: TradingView
Volatility returned on Thursday as buyers and sellers struggled to establish control. As a result, BTC surged to an intraday high of $106,913 and fell to an intraday low of $101,290 before settling at $104,004. Buyers attempted a move past $107,000 on Friday as the price rose to $107,038. However, with sellers active at this level, the price fell back, settling at $104,874 after an increase of 0.84%. The weekend saw BTC back in the red, with the price registering a marginal decline on Saturday. Bullish sentiment intensified on Sunday as the price dropped over 2% to $102,655. The current session sees sellers firmly in control, with BTC down nearly 3% and trading below $100,000.
The MACD has flipped to bearish, indicating that sellers have the upper hand. With buyers exhausted, BTC could drop towards $95,000 or even test the $90,000 support level. Buyers are expected to defend this level, and we could see a strong rebound. However, if such a rebound fails to materialize, BTC could be in for a deeper correction.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is struggling to maintain momentum, with bearish sentiment intensifying as markets begin the week in the red. ETH has underperformed since the beginning of the new year, with its price peaking at $3,744 in the first week of January before dropping substantially. ETH has since struggled to move past $3,500, with the 20 and 50-day SMAs acting as dynamic resistance levels.
ETH has struggled to move past the 20-day sMA since dropping below it last weekend after a substantial drop of 4.84%. Buyers attempted a recovery on Sunday as ETH rose to an intraday high of $3,446. However, ETH lost momentum after reaching this level, allowing sellers to take control. As a result, ETGH dropped nearly 3% and settled at $3,212. ETH rallied to an intraday high of $3,453 on Monday as it started the week positively. However, it could not stay above the 20-day SMA and ultimately settled at $3,280, registering an increase of 2.13%. Buyers retained control on Tuesday as ETH rose 1.45% to $3,327. With the 20-day SMA coming into play, ETH dropped 2.57% on Wednesday and settled at $3,242.
Source: TradingView
Buyers returned to the market on Thursday as ETH rose nearly 3% and settled at $3,339. Buyers attempted a move past the 20-day SMA on Friday as ETH rose to an intraday high of $3,427 before losing momentum. As a result, sellers took over, and ETH dropped 0.88% to $3,309, remaining below the 20-day SMA. ETH registered a marginal increase on Saturday before turning bearish on Sunday to register a substantial drop of 2.54% and settle at $3,233. The current session has seen bearish sentiment increase substantially, with the price down nearly 5% and trading around $3,100. If sellers continue to dominate the market, ETH could decline further and test the crucial $3,000 support level. Buyers will do their best to prevent a decline below this level.
However, the MACD has flipped to bearish, while the RSI is currently sitting at 39, indicating declining bullish momentum.
Solana (SOL) Price Analysis
Solana (SOL)’s bullish momentum has stalled significantly since hitting a new all-time high last Sunday. SOL capped an impressive rally by surging to $295 as bulls set their sights on $300. However, buyers lost momentum after reaching this level, and SOL dropped to $252, registering a drop of nearly 4%. Sellers retained control on Monday, dropping just over 4% to $241. The price faced volatility on Tuesday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand, and SOL registered an increase of 3.48% and settled at $250. SOL rallied on Wednesday as it attempted to move past $270. However, with sellers active at this level, buyers lost momentum, and the price settled at $257, rising nearly 3%.
Source: TradingView
Momentum waned on Thursday as SOL dropped to an intraday low of $242 before settling at $243. Friday saw a significant jump in volatility as buyers attempted to move past $270. However, they lost momentum after reaching $270, and the price dropped to $253, registering only a marginal increase. Despite selling pressure, SOL registered a rise of 1.16% on Saturday and settled at $256. Market sentiment changed on Sunday as SOL plummeted over 6% to $240. The current session sees SOL down nearly 8%, with the price slipping below key support levels and trading at $222. If selling pressure persists, we could see SOL dip below the 20 and 50-day SMAs and test the $200 level. The RSI has dipped below 50, indicating growing bearish momentum.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) has been trading in a downward trajectory since last weekend when it rallied to a high of $0.435 as bulls eyed a move past $0.45. However, buyers lost momentum after reaching this level, and DOGE dropped nearly 5% to slip below $0.40 and settle at $0.395. Bearish sentiment intensified on Sunday as DOGE dropped almost 10%, dropping below the 20 and 50-day SMAs and settling at $0.357. Buyers attempted a recovery as DOGE briefly went past the 20 and 50-day SMAs to an intraday high of $0.385. However, overwhelming selling pressure caused buyers to lose momentum. As a result, DOGE dropped to $0.354, registering a decline of nearly 1%. DOGE experienced significant volatility on Tuesday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price rose over 5% to cross the 20 and 50-day SMAs and settle at $0.372.
Source: TradingView
DOGE was back in the red on Wednesday, dropping nearly 3% to slip below the 20 and 50-day SMAs and settle at $0.362. Sellers consolidated their position on Thursday, pushing DOGE down almost 3% to 0.352. Buyers attempted a move past the moving averages on Friday as DOGE rose to an intraday high of $0.364 before losing momentum. DOGE ultimately registered a marginal drop and settled at $0.351. The weekend started with DOGE registering a marginal increase and moving to $0.352. However, market sentiment changed on Sunday as the price dropped nearly 5% to $0.335. The current session sees DOGE down over 6% and trading around $0.315. Buyers will try to regain control and push above $0.35 towards $0.40. On the other hand, if sellers retain control, DOGE could slump to $0.30 or lower.
Injective (INJ) Price Analysis
Injective (INJ) started the previous week on a positive note despite registering a substantial decline on Sunday, dropping over 13% to slip below key moving averages and settle at $20.67. INJ rallied to an intraday high of $23.73 but could not stay at this level and ultimately settled at $21.61 after registering an increase of 4.58%. Buyers retained control on Tuesday despite facing significant selling pressure, and INJ registered a rise of 5.36% to move past the 20 and 200-day SMAs and settle at $22.77. Bearish sentiment returned on Wednesday as INJ dropped below the 20 and 200-day SMAs and settled at $21.44. Sellers retained control on Thursday as the price fell nearly 3% and settled at $20.84.
Source: TradingView
INJ faced volatility on Friday as buyers and sellers struggled to take control. As a result, INJ rallied to an intraday high of $21.89 and fell to an intraday low of $20.19 before settling at $20.79 after a marginal decline. Sellers retained control over the weekend as INJ dropped 0.73% on Saturday and 2.35% on Sunday to end the weekend in the red at $20.15. INJ has dipped below the $20 support level during the current session, with the price down nearly 7% and trading around $18.78.
Algorand (ALGO) Price Analysis
Algorand (ALGO)’s steady decline accelerated during the current session as it dipped below key moving averages and is now testing the support at $0.35. ALGO started the previous week on a very bullish note, surging to an intraday high of $0.478 before settling at $0.430. However, sentiment changed on Tuesday, and the price dropped 1.53% to $0.423. Sellers retained control on Wednesday as ALGO dropped over 4% and settled at $0.405. With the 20 and 50-day SMAs acting as support, the price recovered on Thursday, rising 1.17% to settle at $0.410.
Source: TradingView
However, it was back in the red on Friday, dropping 2.37% to settle at $0.40. Buyers propped up the price marginally on Saturday as ALGO registered an increase of 0.80% and settled at $0.403. Bearish sentiment intensified on Sunday as ALGO slipped below the 20 and 50–and 50-day SMAs and settled at $0.383. The current session sees ALGO down over 8% as sellers look to drive it below the $0.35 support level.
Pudgy Penguins (PENGU) Price Analysis
Pudgy Penguins (PENGU) has declined substantially in January, with bearish sentiment intensifying over the past week. PENGU slipped below $0.030 on Saturday, falling to an intraday low of $0.026 before settling at $0.029. Selling pressure registered a substantial increase on Sunday as the price plummeted nearly 15% to $0.025. Sellers retained control on Monday and Tuesday as PENGU faced increased volatility, ultimately settling at $0.023. Despite the overwhelming bearish sentiment, PENGU registered a marginal increase on Wednesday, rising 2.55% and settling at $0.024.
Source: TradingView
However, bearish sentiment returned on Thursday as PENGU registered a marginal drop and settled at $0.024. Sellers retained control on Friday, with PENGU registering a fall of nearly 6% and settling at $0.022. Buyers returned to the market over the weekend, rising 1.37% on Saturday and over 7% on Sunday to end the weekend at $0.024. PENGU is back in the red during the current session, with the price down nearly 13% and trading around $0.021.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
